Celebrating humanity's flourishing through the spread of capitalism and the rule of law
07 Jul 2016 Leave a comment
in economics of education Tags: endogenous growth theory
Economics used to be a young man’s game but no more. Considerable investment is needed in learning your craft before people start publishing, much less get into the top journals.
Source: Ageing and productivity: Economists and others | VOX, CEPR’s Policy Portal.
06 Jul 2016 Leave a comment
in economic growth, economics of education, human capital, labour economics, macroeconomics Tags: endogenous growth theory, graduate premium
Some countries have experienced large increases in the number of young people graduating from University when compared to their parents. Germany and the USA aside, all countries have experienced a noticeable increase in young adults with tertiary degrees.
Source: Education at a Glance 2015 – © OECD 01-01-2015.
If human capital is such a major driver of economic growth, should not these countries with large increases in tertiary educated workers be anticipating a growth spurt? The gaps in tertiary attainment across the OECD are much less than they used to be for young adults. Ireland’s burst in tertiary educated workers was after the Celtic Tiger years, not before or during.
Source: Education at a Glance 2015 – © OECD 01-01-2015.
03 Jul 2016 Leave a comment
in discrimination, economics of education, gender, human capital, labour economics, labour supply, occupational choice, politics - USA Tags: employer discrimination, ethnic wage gap, gender wage gap, racial discrimination, racial wage gap
29 Jun 2016 Leave a comment
in economics of education, economics of love and marriage, human capital, labour economics, occupational choice, poverty and inequality Tags: power couples, student loans
Those of European ethnicity had a median net worth of $114,000, compared with $23,000 for Māori , $12,000 for Pasifika and $33,000 for Asians according to the latest Statistics New Zealand data just released.
The Tertiary Education Union made great play about how much of the low net worth of young people and others is due to student loans
Young people (aged 15–24) had the lowest individual median net worth of any age group – just $1,000. The most common debt for young people is education loans.
The union then goes on to say that
Median education loan liabilities are only one-tenth of Pākehā people’s median assets, but they are a quarter of Māori people’s assets and over a third of Pacific people’s assets (table 7.01).
The data shows that the households with the smallest median net worth have the largest median education loans (table 2.02). These loans make up nearly a quarter of their total debt (table 2.03).
Over a third of households within the poorest quintile of net worth have education loans, whereas less than a tenth of households in the wealthiest quintile have education debt (table 2.04).
In a nutshell, not enough people are going to university because of the prospect of repaying student loans and more would go if it were cheaper and that would reducing inequality. The explosion in tertiary educational attendance over the last generation, an increase of about 150% for the adult population aged 25 to 64 was not good enough to reduce inequality.
Free tuition at University is a hand-out to those already had a good start in life. It will be paid for by those who will never go because they do not have an above average IQ.
How much more will you earn by going to university? It depends hugely on which country you're from http://t.co/7RMnUTM8nj—
paulkirby (@paul1kirby) September 11, 2015
Low-cost student loans were supposed to be away to reduce inequality. Instead, they give a flying start to those of already above-average talents. If social justice is to mean anything, it does not involve giving freebies to those who already have a head start in life.
The average student loan debt is about $14,000 while the lifetime earnings premium from university education is about $1/2 million in New Zealand.
Source: Statistics New Zealand, Household net worth statistics: Year ended 30 June 2015.
Lowering university tuition fees and easing the terms of student loans simply means that those who do well at university will not have to pay back as much to the government. People who succeed at university already have above average IQs so they already had a good head start in life.
Charles Murray points out that succeeded at college requires an IQ of at least 115 but 84% of the population don’t have this:
Historically, an IQ of 115 or higher was deemed to make someone “prime college material.” That range comprises about 16 per cent of the population. Since 28 per cent of all adults have BAs, the IQ required to get a degree these days is obviously a lot lower than 115.
Cheaper higher education does not help the not so smart secure a qualification they lack the innate talent to earn with decent marks and increases the chance of smart men and women marrying. This increases the inequality between power couples and the rest.
14 Jun 2016 Leave a comment
in applied price theory, applied welfare economics, discrimination, economics, economics of education, human capital, labour economics, labour supply, poverty and inequality Tags: James Heckman
13 Jun 2016 Leave a comment
in applied price theory, applied welfare economics, defence economics, economic history, economics of education, economics of media and culture, economics of regulation, environmental economics, industrial organisation, politics - USA, survivor principle Tags: 2016 presidential election, Twitter left
09 Jun 2016 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, economic history, economics of education, economics of regulation, health economics, income redistribution, industrial organisation, international economics, politics - USA, Public Choice, public economics, rentseeking Tags: 2016 presidential election, antimarket bias, crony capitalism, living wage, pessimism bias, top 1%
05 Jun 2016 Leave a comment
in economics of education, liberalism Tags: crybaby left, free speech, meddlesome preferences, nanny state, political correctness, reactionary left, renegade Left, Twitter left
05 Jun 2016 Leave a comment
in economics of education, gender
05 Jun 2016 Leave a comment
in economics of education, gender, human capital
02 Jun 2016 Leave a comment
in economics of education, labour economics, labour supply, occupational choice Tags: academic bias
Source: The Prevalence of Marxism in Academia, Bryan Caplan | EconLog | Library of Economics and Liberty.
24 May 2016 Leave a comment
in development economics, economics of education, growth disasters, growth miracles, health economics Tags: child mortality, economics of fertility, infant mortality, The Great Escape
13 May 2016 Leave a comment
in economics of education, liberalism Tags: Deirdre McCloskey
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